Press Release

HOUSTON, Aug. 6, 2013 (GLOBE NEWSWIRE) -- Marathon Oil Corporation (NYSE:MRO) today reported second
quarter 2013 net income of $426 million, or $0.60 per diluted
share, compared to net income in the first quarter of 2013 of $383
million, or $0.54 per diluted share. For the second quarter of
2013, adjusted net income was $478 million, or $0.67 per diluted
share, compared to adjusted net income of $361 million, or $0.51
per diluted share, for the first quarter of 2013.

Three Months
Ended

June 30

Mar. 31

(In millions, except per diluted
share data)

2013

2013

Adjusted net income (a)

$478

$361

Adjustments for special items (net of
taxes):

Unrealized gain (loss) on crude oil
derivative instruments

32

(32)

Impairments

--

(10)

Net gain (loss) on dispositions

(73)

64

Pension settlement

(11)

--

Net income

$426

$383

Adjusted net income - per diluted share
(a)

$0.67

$0.51

Net income - per diluted share

$0.60

$0.54

Revenues and other income

$3,898

$4,106

Weighted average shares - diluted

714

712

Exploration expenses

Unproved property impairments

$40

$383

Dry well costs

50

21

Geological and geophysical

12

27

Other

31

34

Total exploration expenses

$133

$465

Cash flow

Cash flow from operations before changes in
working capital (b)

$1,445

$1,601

Changes in working capital

(577)

(73)

Cash flow from operations

$868

$1,528

(a) Adjusted net income is a non-GAAP financial
measure and should not be considered a substitute for net income as
determined in accordance with accounting principles generally
accepted in the United States. See below for further discussion of
adjusted net income.

(b) Cash flow from operations before changes in
working capital is a non-GAAP financial measure and should not be
considered a substitute for cash flow from operations as determined
in accordance with accounting principles generally accepted in the
United States. See below for further discussion of cash flow from
operations before changes in working capital.

"Marathon Oil continued to execute well operationally and had
strong second quarter operating cash flows of $1.445 billion,
before changes in working capital, in spite of lower international
liquid hydrocarbon realizations compared to the first quarter. The
large increase in the second quarter usage of cash for working
capital was primarily a result of two tax installment payments for
Norway, versus one in the first quarter, and our annual tax payment
to Equatorial Guinea," said Clarence P. Cazalot, Jr., Marathon
Oil's executive chairman.

"Second quarter production available for sale in both E&P
segments was at or above the Company's guidance. In the U.S., Lower
48 onshore production grew to 182,000 barrels of oil equivalent per
day (boed), a nearly 6 percent increase over the first quarter,
highlighted by 11 percent growth in the Company's Eagle Ford
operations and more than 5 percent growth in the Bakken. In the
International E&P segment, we again had strong reliability and
the Equatorial Guinea turnaround was completed in 22 days, 8 days
ahead of schedule and under budget. The Company's non-operated Oil
Sands Mining production decreased compared to the first quarter as
a result of unplanned mine downtime and a planned turnaround at the
AOSP in Canada.

"During the quarter we advanced our portfolio optimization
through an agreement to sell our 10 percent working interest in
Angola Block 31 for approximately $1.5 billion. This brings our
total completed or agreed divestitures to $2.9 billion for the
period 2011 to date, at the top end of our targeted $1.5 to $3
billion.

"In June we announced my retirement at year end and the
appointment of Lee M. Tillman who succeeded me as president and CEO
effective Aug. 1. Lee's strong leadership skills and extensive
experience in global operations, project execution and leading edge
technology make him ideally suited to lead our Company and efforts
to create sustainable value for our shareholders," Cazalot
said.

Sales and Production Volumes

Total Company sales volumes (excluding Libya) during the second
quarter of 2013 averaged 457,000 net boed compared to 485,000 net
boed for the first quarter of 2013. This decrease was driven by a
planned turnaround in Equatorial Guinea, unplanned mine downtime
and a planned turnaround at the non-operated Athabasca Oil Sands
Project (AOSP) in Canada, fewer liftings at the non-operated
Foinaven field in the U.K., as well as the first quarter
disposition of the Company's Alaska assets.

Three Months
Ended

June 30

Mar. 31

(mboed)

2013

2013

Net Sales Volumes

North America E&P excluding Alaska

201

193

Alaska

--

5

International E&P excluding Libya
(a)

213

236

Oil Sands Mining (b)

43

51

Total excluding Libya

457

485

Libya

49

38

Total

506

523

(a) Libya is excluded because of uncertainty around sustained
production and sales levels.

(b) Includes blendstocks.

Three Months
Ended

Guidance (a)

June 30

Mar. 31

Q3

(mboed)

2013

2013

2013

Net Production Available for
Sale

North America E&P excluding Alaska

201

193

196-207

Alaska

--

5

International E&P excluding Libya
(b)

217

229

199-208

Oil Sands Mining (c)

37

44

40-45

Total excluding Libya

455

471

Libya

45

46

Total

500

517

(a) This guidance excludes the effect of acquisitions or
dispositions not previously announced.

(b) Libya is excluded because of uncertainty around sustained
production and sales levels.

(c) Upgraded bitumen excluding blendstocks.

The difference between production volumes available for sale and
recorded sales volumes was primarily due to the timing of
International E&P liftings.

Production available for sale from all segments (excluding
Libya) for the second quarter of 2013 averaged 455,000 net boed, an
expected decrease compared to the first quarter of 2013 average of
471,000 net boed as a result of impacts in Equatorial Guinea,
Canada and the disposition of Alaskan assets, as detailed above.
Production available for sale of 418,000 net boed for the North
America E&P and International E&P segments combined
(excluding Libya) was at the upper end of the Company's guidance
for the quarter (403,000 to 420,000 net boed). The OSM segment had
net production in the quarter of 37,000 barrels per day (bbld)
(excluding blendstocks), below the Company's previous guidance of
40,000 to 44,000 bbld as a result of the AOSP unplanned mine
downtime.

North America E&P production available for sale, excluding
Alaska, averaged 201,000 net boed in the second quarter, a 4
percent increase compared to the first quarter of 2013 average of
193,000 net boed.

International E&P production available for sale for the
second quarter of 2013 averaged 217,000 net boed (excluding Libya),
which was lower than the first quarter of 2013 average of 229,000
net boed as a result of the turnaround in Equatorial Guinea and
declines in Norway and U.K. production.

As per the table above, production available for sale in the
third quarter of 2013 is expected to be lower than the second
quarter. This anticipated decrease is a result of a planned
turnaround in Norway, planned pipeline curtailments and turnaround
at Brae in the U.K. North Sea, as well as compression and subsea
equipment issues at non-operated Foinaven in the U.K. Production at
Foinaven was shut-in in mid-July and is expected to resume at
partial rates in mid-August. Full year 2013 guidance for production
available for sale from the combined North America E&P and
International E&P segments (excluding Libya) has been narrowed
to a range of 410,000 to 425,000 net boed, from the previous
guidance of 405,000 to 425,000 net boed. Full year 2013 production
guidance for the OSM segment has been narrowed to 40,000 to 44,000
net bbld of synthetic crude oil, from the previous guidance of
40,000 to 45,000 net bbld.

Segment Results

Total segment income was $623 million in the second quarter of
2013, compared to $432 million in the first quarter of 2013.

Three Months
Ended

June 30

Mar. 31

(In millions)

2013

2013

Segment Income (Loss)

North America E&P

$221

$(59)

International E&P

382

453

Oil Sands Mining

20

38

Segment Income
(a)

$623

$432

(a) See Supplemental Statistics below for a
reconciliation of segment income to net income as reported under
generally accepted accounting principles.

North America E&P

The North America E&P segment reported income of $221
million in the second quarter of 2013, compared to a loss of $59
million in the first quarter of 2013. The improvement was primarily
due to higher liquid hydrocarbon sales volumes and lower unproved
property impairments related to cancelled or expiring leases.

EAGLE FORD: Marathon Oil's average net production in the Eagle
Ford shale grew approximately 11 percent from the first quarter of
2013 to approximately 80,000 boed in the second quarter.
Approximately 62 percent of second quarter net production was crude
oil/condensate, 17 percent was natural gas liquids (NGLs) and 21
percent was natural gas. During the second quarter, Marathon Oil
reached total depth on 82 gross Company operated wells and brought
70 gross operated wells to sales, compared to 76 and 68 gross wells
respectively in the first quarter. With approximately 85 percent
pad drilling, which continues to improve efficiencies and reduce
costs, the Company's second quarter spud-to-total depth averaged 12
days and 18 days spud-to-spud.

The Company continues to evaluate the potential of downspacing
to 40- and 60-acre units, with results of the downspacing pilots
expected to be released in December. It also continues to evaluate
the Austin Chalk and Pearsall formations across its acreage
position. To date the Company has completed four Austin Chalk wells
with average lateral length of 4,075 feet yielding average 24-hour
initial production (IP) rates of 980 gross boed (485 bbld of crude
oil/condensate, 220 bbld of NGLs and 1.65 million cubic feet per
day of natural gas) on chokes ranging from 12/64-inch to
16/64-inch. Early Austin Chalk production results suggest the mix
of crude oil/condensate, NGLs and natural gas to be similar to
Eagle Ford condensate wells. Also in the second quarter one
Pearsall well was completed with a 24-hour IP rate of 580 gross
boed on a maximum choke of 18/64-inch.

BAKKEN: Marathon Oil averaged production of approximately 39,000
net boed during the second quarter compared to 37,000 net boed in
the previous quarter. The Company reached total depth on 22 gross
wells during the second quarter and brought 16 gross wells to
sales, compared to 18 and 22 gross wells respectively in the first
quarter. In the second quarter Marathon Oil's average time to drill
a well continued to improve, averaging 15 days spud-to-total depth,
or 22 days spud-to-spud, a top-quartile performance in the areas in
which Marathon Oil operates. Marathon Oil's Bakken production
averages approximately 90 percent crude oil, 5 percent NGLs and 5
percent natural gas.

OKLAHOMA RESOURCE BASINS: The Company's unconventional
production averaged 13,000 net boed during the second quarter,
which is flat compared to the previous quarter. During the second
quarter, the Company reached total depth on two gross wells and
brought three gross wells to sales. Marathon Oil anticipates
spudding two wells each in the Mississippi Lime in central Oklahoma
and Granite Wash in northwestern Oklahoma during the second half of
2013.

GULF OF MEXICO: Marathon Oil participated in an appraisal well
on the Gunflint prospect on Mississippi Canyon Block 992, in which
it holds an 18 percent outside-operated working interest. The
appraisal well successfully encountered 109 feet of net pay within
the primary reservoir targets. After penetrating the initial
appraisal targets, the well was deepened to a previously untested
Lower Miocene interval with a total depth of 32,835 feet.
Commercial hydrocarbons were not encountered in the deeper
exploration objective. Additional exploration potential remains in
an adjacent three-way structure to the north, a candidate for
future exploration following development of the confirmed
resources.

Marathon Oil expects to spud its first exploration well on the
Madagascar prospect (De Soto Canyon Block 757) late in the third
quarter. The Company has reduced its working interest in the
Madagascar prospect from 100 percent to 70 percent as a result of a
farm-down in the second quarter with no up-front cash proceeds. As
stated previously, the Company anticipates further reducing its
interest to a target of 40 - 50 percent working interest by the
time of spud.

International E&P

The International E&P segment reported income of $382
million in the second quarter of 2013, compared to segment income
of $453 million in the first quarter of 2013. The decrease is
primarily a result of lower volumes and price realizations, as well
as less income from equity method investments due to the planned
turnaround in Equatorial Guinea in the second quarter.

EQUATORIAL GUINEA: Net production available for sale averaged
approximately 101,000 boed in the second quarter, compared to
approximately 110,000 boed in the first quarter of 2013. The
planned turnaround that occurred in April was safely completed in
22 days, eight days ahead of schedule and below budget.

NORWAY: The production decline that has been projected and
previously disclosed in the Alvheim area continues to be less than
expected. Net production available for sale averaged 85,000 boed
for the second quarter, slightly lower than the 86,500 boed
produced in the first quarter of 2013. The better-than-expected
results were achieved through continued strong operational
performance that delivered availability of 96 percent; production
optimization from well management; and reservoir and well
performance at the upper end of expectations, resulting primarily
from a delay in anticipated water breakthrough at the Volund
field.

The Sverdrup exploration well on PL 330 in the Norwegian Sea was
spud on June 6. A total depth of 18,150 feet is expected to be
reached in early September. The Company holds a 30 percent
non-operated working interest in the license.

KURDISTAN REGION OF IRAQ: The Company spud the Mirawa
exploration well on its operated Harir Block on March 19 and the
Safen exploration well on its operated Safen Block on April 18. The
Mirawa well reached total depth of 13,975 feet in July and is
currently testing multiple zones of interest. The Safen well is
expected to reach a projected total depth of 12,100 feet in August,
with a testing program to follow. Marathon Oil holds a 45 percent
working interest in each block.

On the outside-operated Sarsang Block, two exploration wells,
Mangesh and Gara, were spud in the second half of 2012 and have
reached total depth, with testing programs ongoing. Also on the
Sarsang Block, the East Swara Tika exploration well was spud July
15 with a projected total depth of 11,150 feet. The well will test
additional resource potential to the northeast of the previously
announced Swara Tika discovery. On the outside-operated Atrush
Block, following a successful appraisal program and a declaration
of commerciality, a plan for field development was filed with the
Kurdistan Ministry of Natural Resources (MNR) on May 6. The
development plan is currently under review with final approval
expected in the third quarter. First production is anticipated
in 2015. The Atrush-3 appraisal well, approximately 6 miles
from the discovery well, was spud on March 25, reached total depth
of 5,925 feet and is currently testing. Marathon Oil holds a 25
percent working interest in the Sarsang Block and a 15 percent
working interest in the Atrush Block.

ETHIOPIA: The Sabisa-1 well, on the onshore South Omo Block in a
frontier rift basin, encountered reservoir quality sands, oil and
heavy gas shows and a thick shale section. The presence of oil
prone source rocks, reservoir sands and good seals is encouraging
for the numerous fault bounded traps identified in the basin.
Because of mechanical issues, the well was abandoned before a full
evaluation could be completed. The rig will mobilize to the nearby
Tultule prospect, approximately two miles from the Sabisa-1.
Marathon Oil holds a 20 percent non-operated working interest in
the South Omo Block.

GABON: Exploration drilling began in the second quarter on the
Diaman well in the Diaba License G4-223, offshore Gabon, to test
the deepwater presalt play. The well reached the projected total
depth of 18,300 feet in the third quarter. Logging and evaluation
are under way. Marathon Oil holds a 21.25 percent non-operated
working interest in the Diaba License.

Oil Sands Mining (OSM)

The OSM segment reported income of $20 million for the second
quarter of 2013, compared to $38 million in the first quarter of
2013. The decrease in income was primarily a result of lower second
quarter sales volumes due to unplanned mine downtime and the
planned turnaround at the non-operated AOSP in Canada. The decrease
in revenue from lower volumes was partially offset by higher price
realizations. Second quarter operating costs were higher than the
first quarter of 2013, primarily as a result of the turnaround. The
total cost to date of the turnaround is approximately $25 million
(net), of which $16 million (net) occurred in the second
quarter.

Corporate and Other

The change in working capital in the second quarter of 2013
includes two tax installment payments for Norway, versus one in the
first quarter, as well as an annual tax payment to Equatorial
Guinea.

Marathon Oil announced in June that it entered into an agreement
to sell its 10 percent working interest in the Production Sharing
Contract and Joint Operating Agreement in Block 31 offshore Angola.
The transaction has a total value of approximately $1.5 billion,
excluding any purchase price adjustments at closing. The companies
anticipate closing the transaction in the fourth quarter of 2013,
subject to government, regulatory and third-party approvals.
Marathon Oil expects to use the proceeds from this sale to
repurchase shares, strengthen the balance sheet and for general
corporate purposes.

As of Aug. 6, 2013, the Company has agreed upon or closed on
nearly $2.9 billion in divestitures over the period of 2011 to
date, at the upper end of its targeted $1.5 billion to $3 billion
of divestitures.

On July 31, Moody's Investors Service upgraded Marathon Oil's
senior unsecured debt rating to Baa1 from Baa2 based on expected
consistent production and reserves growth with conservative
financial policies. Moody's also affirmed Marathon Oil's Prime-2
commercial paper rating and the outlook is stable.

Special Items

In August 2012, Marathon Oil entered into crude oil derivative
instruments related to a portion of its forecast North America
E&P crude oil sales. For the second quarter of 2013, an
after-tax unrealized gain of $32 million ($50 million pre-tax) was
recorded related to these crude oil derivative instruments.

In the second quarter of 2013, Marathon Oil recorded an
after-tax loss of $73 million ($114 million pre-tax) on the
disposition of its interests in the D.J. Basin.

Marathon Oil recorded an after-tax settlement charge of $11
million ($17 million pre-tax) in the second quarter of 2013 in
connection with the Company's U.S. pension plans.

The Company will conduct a conference call with questions and
answers only on Wednesday, Aug. 7 at 8:00 a.m. EDT, during which it
will discuss second quarter 2013 results and will include
forward-looking information. The webcast slides and associated
commentary, as well as the Quarterly Investor Packet, will be
posted to the Company's website at http:ir.marathonoil.com and to
its mobile app as soon as practical following this release today,
Aug. 6. To listen to the Aug. 7 live webcast, visit the Marathon
Oil website at http://www.marathonoil.com. Replays of the webcast
will be available through Sept. 7.

# # #

In addition to net income determined in accordance with
generally accepted accounting principles (GAAP), Marathon Oil has
provided supplementally"adjusted net
income,"a non-GAAP financial measure which
facilitates comparisons to earnings forecasts prepared by stock
analysts and other third parties. Such forecasts generally exclude
the effects of items that are considered non-recurring, are
difficult to predict or to measure in advance or that are not
directly related to Marathon Oil's ongoing operations. A
reconciliation between GAAP net income and"adjusted net income"is provided in
a table on page 1 of this release."Adjusted net
income"should not be considered a substitute for
net income as reported in accordance with GAAP. Management, as well
as certain investors, uses"adjusted net
income"to evaluate Marathon Oil's financial
performance between periods. Management also uses"adjusted net income"to compare
Marathon Oil's performance to certain competitors.

In addition to cash flow from operations determined in
accordance with GAAP, Marathon Oil has provided supplementally
"cash flow from operations before changes in working capital," a
non-GAAP financial measure, which management believes demonstrates
the Company's ability to internally fund capital expenditures, pay
dividends and service debt. A reconciliation between GAAP cash flow
from operations and "cash flow from operations before changes in
working capital" is provided in a table on page 1 of this release.
"Cash flow from operations before changes in working capital"
should not be considered a substitute for cash flow from operations
as reported in accordance with GAAP. Management, as well as certain
investors, uses "cash flow from operations before changes in
working capital" to evaluate Marathon Oil's financial performance
between periods. Management also uses "cash flow from operations
before changes in working capital" to compare Marathon Oil's
performance to certain competitors.

This release contains forward-looking statements with
respect to the timing and levels of the Company's worldwide liquid
hydrocarbon, natural gas and synthetic crude oil production,
anticipated drilling activity, a planned turnaround in Norway and
planned pipeline curtailments and turnaround at Brae in the U.K.
North Sea, expected timing and rate of production returning at
Foinaven, possible increased recoverable resources from optimized
well spacing in the Eagle Ford resource play, additional farm-down
of the Company's working interest in the Madagascar prospect in the
Gulf of Mexico, anticipated exploration drilling activity in the
Gulf of Mexico, Ethiopia, Gabon, the Kurdistan Region of Iraq and
Norway, the timing of approval of a plan of development and first
production for the Atrush Block, the timing of closing the sale of
the Company's 10 percent working interest in Block 31 offshore
Angola, including the use of proceeds, and projected asset
dispositions through 2013. The average times to drill a well
referenced in the release may not be indicative of future drilling
times. The initial production rates referenced in this release may
not be indicative of future production rates. Factors that could
potentially affect the timing and levels of the Company's worldwide
liquid hydrocarbon, natural gas and synthetic crude oil production,
anticipated drilling activity, a planned turnaround in Norway and
planned pipeline curtailments and turnaround at Brae in the U.K.
North Sea, possible increased recoverable resources from optimized
well spacing in the Eagle Ford resource play, and anticipated
exploration drilling activity in the Gulf of Mexico, Ethiopia,
Gabon, the Kurdistan Region of Iraq and Norway include pricing,
supply and demand for liquid hydrocarbons and natural gas, the
amount of capital available for exploration and development,
regulatory constraints, timing of commencing production from new
wells, drilling rig availability, availability of materials and
labor, the inability to obtain or delay in obtaining necessary
government or third-party approvals and permits, unforeseen hazards
such as weather conditions, acts of war or terrorist acts and the
governmental or military response thereto, and other geological,
operating and economic considerations. The expected timing and rate
of production returning at Foinaven, additional farm-down of the
Company's working interest in the Madagascar prospect in the Gulf
of Mexico, the timing of approval of a plan of development and
first production for the Atrush Block and the projected asset
dispositions through 2013 are based on current expectations, good
faith estimates and projections and are not guarantees of future
performance. The timing of closing the sale of the Company's 10
percent working interest in Block 31 offshore Angola is subject to
the satisfaction of customary closing conditions and obtaining
necessary government, regulatory and third-party approvals. The
expectations with respect to the use of proceeds from the sale of
our 10 percent working interest in Block 31 offshore Angola could
be affected by changes in the prices and demand for liquid
hydrocarbons and natural gas, actions of competitors, disruptions
or interruptions of the Company's exploration or production
operations, unforeseen hazards such as weather conditions or acts
of war or terrorist acts and other operating and economic
considerations. Actual results may differ materially from these
expectations, estimates and projections and are subject to certain
risks, uncertainties and other factors, some of which are beyond
the Company's control and difficult to predict. The foregoing
factors (among others) could cause actual results to differ
materially from those set forth in the forward-looking statements.
In accordance with the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, Marathon Oil Corporation
has included in its Annual Report on Form 10-K for the year ended
December 31, 2012, and subsequent Forms 10-Q and 8-K, cautionary
language identifying other important factors, though not
necessarily all such factors, that could cause future outcomes to
differ materially from those set forth in the forward-looking
statements.

Media Relations Contacts:

Lee Warren: 713-296-4103

John Porretto: 713-296-4102

Investor Relations Contacts:

Howard Thill: 713-296-4140

Chris Phillips: 713-296-3213

Consolidated Statements of Income
(Unaudited)

Three Months
Ended

June 30

Mar. 31

June 30

(In millions, except per share
data)

2013

2013

2012

Revenues and other
income:

Sales and other operating revenues, including
related party

$3,419

$3,440

$2,975

Marketing revenues

499

430

757

Income from equity method investments

77

118

60

Net gain (loss) on disposal of
assets

(107)

109

(28)

Other income

10

9

20

Total revenues and other income

3,898

4,106

3,784

Costs and expenses:

Production

614

578

485

Marketing, including purchases from related
parties

495

429

755

Other operating

86

111

107

Exploration

133

465

172

Depreciation, depletion and amortization

738

747

580

Impairments

--

38

1

Taxes other than income

93

84

55

General and administrative

164

174

154

Total costs and expenses

2,323

2,626

2,309

Income from operations

1,575

1,480

1,475

Net interest and other

(71)

(72)

(57)

Income from operations before income
taxes

1,504

1,408

1,418

Provision for income taxes

1,078

1,025

1,025

Net income

$426

$383

$393

Adjusted net income (a)

$478

$361

$416

Adjustments for special items (net of
taxes):

Unrealized gain (loss) on crude oil
derivative instruments

32

(32)

--

Impairments

--

(10)

--

Net gain (loss) on dispositions

(73)

64

(23)

Pension settlement

(11)

--

--

Net income

$426

$383

$393

Per Share Data

Basic:

Net income

$0.60

$0.54

$0.56

Diluted:

Adjusted net income (a)

$0.67

$0.51

$0.59

Net income

$0.60

$0.54

$0.56

Weighted Average
Shares:

Basic

710

708

706

Diluted

714

712

709

(a) Adjusted net income is a non-GAAP financial measure and
should not be considered a substitute for net income as determined
in accordance with accounting principles generally accepted in the
United States. See above for further discussion of adjusted net
income.

Supplemental Statistics
(Unaudited)

Three Months
Ended

June 30

Mar. 31

June 30

(in millions)

2013

2013

2012

Segment Income (Loss)

North America E&P

$221

($59)

$70

International E&P

382

453

373

Oil Sands Mining

20

38

50

Segment income

623

432

493

Items not allocated to segments, net of
income taxes:

Corporate and unallocated

(145)

(71)

(77)

Unrealized gain (loss) on crude oil
derivative instruments

32

(32)

--

Impairments

--

(10)

--

Net gain (loss) on dispositions

(73)

64

(23)

Pension settlement

(11)

--

--

Net income

$426

$383

$393

Capital Expenditures
(b)

North America E&P

$904

$970

$1,013

International E&P

241

225

202

Oil Sands Mining

97

45

43

Corporate

15

30

19

Total

$1,257

$1,270

$1,277

Exploration Expenses

North America E&P

$76

$435

$147

International E&P

57

30

25

Total

$133

$465

$172

Provision for Income
Taxes

Current income taxes

$1,009

$981

$928

Deferred income taxes

69

44

97

Total

$1,078

$1,025

$1,025

(b) Capital expenditures include changes in
accruals.

Supplemental Statistics
(Unaudited)

Three Months
Ended

June 30

Mar. 31

June 30

2013

2013

2012

North America E&P - Net Sales
Volumes

Liquid Hydrocarbons
(mbbld)

148

141

93

Bakken

37

35

25

Eagle Ford

64

58

18

Anadarko Woodford

5

4

2

Other North America

42

44

48

Crude Oil and Condensate
(mbbld)

126

121

85

Bakken

35

33

24

Eagle Ford

50

46

16

Anadarko Woodford

1

1

1

Other North America

40

41

44

Natural Gas Liquids
(mbbld)

22

20

8

Bakken

2

2

1

Eagle Ford

14

12

2

Anadarko Woodford

4

3

1

Other North America

2

3

4

Natural Gas (mmcfd)

316

340

319

Bakken

12

13

8

Eagle Ford

99

83

18

Anadarko Woodford

49

51

23

Alaska

--

31

82

Other North America

156

162

188

International E&P - Net Sales
Volumes

Liquid Hydrocarbons
(mbbld)

177

180

177

Equatorial Guinea

30

37

35

Norway

79

79

77

United Kingdom

14

21

22

Libya

45

34

43

Other International

9

9

--

Natural Gas (mmcfd)

514

568

501

Equatorial Guinea

401

447

394

Norway

53

54

53

United Kingdom (c)

36

41

49

Libya

24

26

5

Oil Sands Mining - Net Sales
Volumes

Synthetic Crude Oil (mbbld) (d)

43

51

44

Total Company - Net Sales
Volumes (mboed)

506

523

451

Net Sales Volumes of Equity Method
Investees (mtd)

LNG

5,820

6,787

5,467

Methanol

973

1,410

1,268

(c) Includes natural gas acquired for injection and
subsequent resale of 8 mmcfd, 11 mmcfd and 17 mmcfd in the second
and first quarters of 2013 and the second quarter of 2012,
respectively.

(d) Includes blendstocks.

Supplemental Statistics
(Unaudited)

Three Months
Ended

June 30

Mar. 31

June 30

2013

2013

2012

North America E&P - Average
Realizations (e)

Liquid Hydrocarbons ($ per bbl)
(f)

$84.51

$86.14

$84.72

Bakken

85.96

88.60

77.26

Eagle Ford

83.90

88.06

90.82

Anadarko Woodford

50.61

51.05

51.69

Crude Oil and Condensate ($ per
bbl)

$93.75

$94.68

$89.04

Bakken

88.65

91.22

78.99

Eagle Ford

99.40

103.78

99.22

Anadarko Woodford

90.08

90.52

97.05

Natural Gas Liquids ($ per
bbl)

$31.72

$35.48

$40.54

Bakken

35.92

41.05

43.27

Eagle Ford

28.09

28.16

33.91

Anadarko Woodford

33.61

37.94

31.50

Natural Gas ($ per mcf)

$4.19

$3.86

$3.42

Bakken

4.47

3.61

2.89

Eagle Ford

4.17

3.35

2.13

Anadarko Woodford

4.15

3.67

2.66

Alaska

--

7.90

6.59

International E&P- Average
Realizations (e)

Liquid Hydrocarbons ($ per
bbl)

$100.00

$107.68

$104.82

Equatorial Guinea

54.09

65.89

64.48

Norway

107.21

117.13

111.40

United Kingdom

101.85

112.25

110.16

Libya

117.55

129.56

122.30

Other International

100.30

105.95

--

Natural Gas ($ per mcf)

$2.37

$2.57

$2.25

Equatorial Guinea (g)

0.24

0.24

0.24

Norway

12.13

14.00

10.54

United Kingdom

10.23

11.27

9.53

Libya

4.65

5.04

0.70

Oil Sands Mining - Average
Realizations (e)

Synthetic Crude Oil ($ per
bbl)

$89.39

$79.98

$79.31

(e) Excludes gains or losses on derivative
instruments.

(f) Inclusion of realized gains (losses) on crude oil
derivative instruments would have increased (decreased) North
America E&P average liquid hydrocarbon realizations by $1.22
per bbl for the second quarter of 2013 and ($0.37) per bbl for the
first quarterof 2013. There were no realized gains (losses)
on crude oil derivative instruments in the second quarterof
2012.

(g) Primarily represents fixed prices under long-term
contracts with Alba Plant LLC, Atlantic Methanol Production Company
LLC and Equatorial Guinea LNG Holdings Limited, which are equity
method investees. Marathon Oil includes its share of income from
each of these equity method investees in the International E&P
segment.